India Is Now World’s 3rd Largest Tech Startup Hub; Bengaluru Overtakes Delhi To Become #1 Destination For Tech Entrepreneurs
The Associated Chambers of Commerce and Industry of India (Assocham) and research organization ‘Thought Arbitrage’ have jointly conducted a study of startup ecosystem globally, with special focus on tech startups.
The study has found that Bengaluru is the mecca of tech startups in India, as it has overtaken both Delhi-NCR and Mumbai in terms of new startups and their expansion. Commanding an impressive 26% share of the overall Indian tech startups industry, Bengaluru is the place to be when it comes to launching a tech startup.
With 23% share, Delhi-NCR is at close #2 while Mumbai is placed #3 with 17% share.
In May this year, an IISC (Indian Institute of Science) report had claimed that due to massive infrastructure logjam and mindless expansion of concrete all over the city, Bengaluru may be unlivable by 2021. Such facts seems not to bother the daring tech startups, which are continuing to prefer this city for opening up their new offices and branches.
The report mentions Chennai and Hyderabad, as ‘quite popular among the techies who are budding entrepreneurs’. As per the findings of the report, Hyderabad grabbed 8% share of tech startups, while Chennai and Pune were tied at 6% share.
To be very honest, we had expected Hyderabad to notch up better results compared to Bengaluru as most of the innovations, and big launches are now happening in this city. No wonder, Apple decided to open their $25 million offshore tech development centre in this city; India’s biggest tech startup incubator: T-hub is opened in Hyderabad and even Uber has opened their largest facility outside USA in Hyderabad.
India Is 3rd Largest Tech Startup Hub
If we leave aside US and UK, then India is right now world’s largest tech startup hub, as per the findings of the Assocham report. With 4200 tech startups in 2015, India is now placed #3 globally after USA which has 47,000 tech startups and UK which has 4500 startups dealing in technology.
Interestingly, there is no mention of China in the ranking of tech startups.
However, in the overall ranking of startups, which includes both tech and non-tech entities, India has been ranked equally with China, as the study found both of these developing countries to have exactly 10,000 startups (tech + non-tech).
USA is still at #1 with massive 83,000 startups.
This way, India is now ranked within top 5 countries of the world, in terms of startup ecosystem.
The report mentions a number of factors, which can improve India’s ranking among other countries, and encourage more entrepreneurs to take the plunge, and discover solutions which can create wealth for all.
Tax exemption is the one the strongest suggestions made by the report, besides ‘experimentation to encourage fresh ideas without fear of failure’ has also been suggested. A unique Stanford University model has been recommended for Indian startup ecosystem, wherein courses related to small and medium scale businesses has been recommended for creating more awareness about the exciting world of entrepreneurship.